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26 July 2006: No 44/06

PUBLIC SERVANTS ON GOVERNMENT EMPLOYEES MEDICAL SCHEME GET 75% SUBSIDY

Following negotiations over the last few months, the state as an employer and the trade unions to the Public Service Coordinating Bargaining Council (PSCBC) concluded a collective agreement on Medical Assistance for Public Service Employees on Tuesday, 20 June 2006.

In terms of the agreement the employer shall with effect from 1 July 2006 pay to employees who belong to or join GEMS, 75% of the employee’s total monthly medical contribution subject to a maximum of R1 900.. The maximum subsidy cap is comprised as follows:

• R500 per principal member;
• R500 per first dependant; and
• R 300 per each additional dependant.

One of the main features of the agreement, that supports the principle of accessibility to medical cover for all employees, is the 100% subsidisation of employees’ salary levels 1,2,3,4,and 5 who belong to or join GEMS on the Sapphire option. The subsidisation is limited to a maximum cap of R1 900.

All new employees and those currently not accessing medical cover are required to join gems to access the new subsidy. The status quo in respect of the employer’s medical subsidy will be maintained for those employees that belong to other registered medical schemes. These employees are free to join GEMS.

As of 1July 2006 employees who migrate from any open medical scheme to GEMS may continue to receive a monthly subsidy as at 30 June 2006, provided that the amount does not exceed the employee’s total monthly medical contributions. In other words they will not be worse off.

The current post-retirement medical assistance remains unaffected. The employer, however, gave commitment to investigate this provision further and revert to the PSCBC by 1 April 2007.

GEMS also offer a comprehensive HIV disease management programme to its members and their dependants.

Since its inception the enrolment of public service employees to GEMS has been encouraging to the extent that GEMS is the fastest growing medical scheme in South Africa. This agreement will further enhance the enrolment on the scheme.

For further information on enrolment and benefits contact GEMS via:

• Call centre: 0860 00 4367 between 08:00 and 16:30
• Fax: 0861 00 4367
• www.gems.gov.za
• enquiries@gems.gov.za
• Sending and SMS to 083 450 4367 stating your PERSAL/PERSOL number.